- Investors lost confidence in Siemens Energy and its management after its third profit warning in 9 months. The share price hit one low after another.
- The reason for the performance isn't in the Gas & Power segment, which was initially the issue for investors, but in Siemens Gamesa, in which SE holds a 67% stake.
- Especially the Onshore wind business suffers from post-COVID impacts like increasing material and logistic costs as well as tight supply chains, but also from homemade problems.
- As I see it, there is only one way out: Siemens Energy has to buy the 33% stake and take full control over Siemens Gamesa. But that carries additional risks.
- Until then, given these circumstances, remain on the sidelines, watch and wait. The challenges will remain in 2022 and likely beyond.
For further details see:
Siemens Energy And Its $5bn Problem